As you know, people who don’t reside within the Palos Heights city limits aren’t entitled to a library card as they don’t pay into the tax base that funds the library. We are a bit unusual in that we have two sizeable areas of unincorporated Palos Heights who don’t pay taxes to any library. Statute allows us to offer library cards to people who live in unincorporated areas if they pay a non-resident card fee each year. There are two allowable methods for calculating what this fee will be.
The first is the “general mathematical formula.” This entails calculating that average cost that each household in Palos Heights pays to the library and charging that amount to any non-resident household that wants to have a card. The advantages of this method are that it’s simple and non-intrusive. We do a simple calculation to establish the average cost per household of library services, and we apply that cost identically to every non-resident.
The second method that we can use is the “tax bill formula.” This method entails looking at the tax bill of each non-resident who is interested in getting a card and doing a quick calculation to determine how much they would pay to the library if their home were in the city limits. The advantage of this system is that it’s fairer to non-residents, charging them exactly what they would actually pay rather than what the average household pays. The disadvantages are that it requires patrons to bring in a current property tax bill each year, which can feel intrusive, and that it’s a little bit more work for library staff to do this calculation on a case-by-case basis.
In the past, we used the general mathematical formula. It was simple and straightforward. Everyone paid the same fee. In 2024, we switched to the tax bill method. Feedback that we receive from patrons has been largely positive. It’s a bit more invasive but also allows some households to pay a lower amount, reflecting the lower amount that they would pay if they lived within our existing taxing boundary. It’s a bit more work for staff, but it also only comes up a few times per year. Beth has mastered the process, and I believe Circulation staff are no longer intimidated by the process. We have had roughly the same number of cards purchased and have lost a few hundred dollars in revenue. But it is also a more equitable process for those patrons willing to pay the fee. My recommendation is that we stay the course.
Recommendation: I recommend that you approve the “tax bill method” in calculating non-resident card fees for the year beginning July 1, 2026.